KRX activates sell-side sidecar for KOSPI on sharp decline

A trader is seen in front of a screen showing financial data inside the dealing room of Hana Bank in central Seoul, Friday. Yonhap

Korea's bourse operator on Friday activated a sell-side sidecar for the benchmark Korea Composite Stock Price Index (KOSPI) after the index fell sharply, led by losses in tech heavyweights.

Program trading in KOSPI-listed shares was suspended for five minutes around 11:28 a.m., according to the Korea Exchange (KRX).

The KOSPI fell by more than 4 percent as of 11:32 a.m.

The decline came amid escalating tensions in the Middle East, after U.S. President Donald Trump said in a media interview he is deciding whether to launch a "massive attack" on Iran that could be "bigger than ever before."

A sell-side sidecar is triggered when the KOSPI 200 Futures Index falls 5 percent or more for at least one minute.